I don't agree. Some business credit cards like capital one are offering 0% for 12 months. 0% is a far cry from 29%! The APR after the initial 12 months is at 12% I believe. I think it is a good idea to use it to boost your capital. If it were at 29% I would agree it is a bad idea...

07-27-2012

BrotherMysterio

Quote:

Originally Posted by fearforyourlife

I don't agree. Some business credit cards like capital one are offering 0% for 12 months. 0% is a far cry from 29%! The APR after the initial 12 months is at 12% I believe. I think it is a good idea to use it to boost your capital. If it were at 29% I would agree it is a bad idea...

Well, you'd think so, yet crushing credit card debt is a major epidemic in this country. :( Believe me, what you described is precisely where my issues with credit card debt started, and where millions of people's problems started as well. Trust me when I say that we were all pretty much frightfully too clever for our own good. Like I said, "playing with the bank's money."

Unless you pay it all back, at 12 months and 1 day, that 29% interest rate comes crashing down on you like an Acme Anvil in a Roadrunner cartoon, and midwife's you into a whole new world of hurt. When you see first time haunters idly musing over whether or not to spend $10K or $20K or more on their haunt, much less some $8K on one room, then that is just a disaster waiting to happen.

Consider, if they had the money, they wouldn't need to use the credit card, yes? Well, what? Are they going to have a spare $20K lying around in 12 months and 1 day that they can use to pay that debt off in full? Are they planning on winning the lottery about that time? Did they already take out a second mortgage on their home to cover expenses, and are pretty skint as it is? What if they face a financial crisis? Based on real world results, if they didn't have it at the start of the year, they probably won't have it at the end of the year either. I know I didn't.

These are all realities that regular people face, even without taking on something as risky as a haunt. I don't know how much credit card debt you have, but I know from my own experience and the experience of millions of other people, this is a risky game to play.

(Now, that being said, a few thousand in available credit for incidentals during a successful run, that might be more tenable.)

C.

07-27-2012

scottylmt

I agree, IF you're going to use a card, keep it at a manageable amount. Part of the reasoning here is if you ever need a serious loan for real world problems, high amounts of revolving (cc) debt is the worst thing you can show; that will make you a much higher risk to the bank, so you'll wither need to pay more money down or a higher interest rate.

If youre not getting a loan, Another option is to get a LINE OF CREDIT through your bank. This will have a slightly higher interest rate, but like a cc you only pay for what you use. An added benefit is you will develop a deeper relationship with your bank, which ultimately leads to waived fees and better/faster service. But keep in mind that a LOC is also revolving debt..

Again, avoid unmanageable amounts on any credit card, unless you have a foolproof schedule of payments based on a fixed amount, so that you pay it off before that 0% goes away. There's also the balance transfer game but let's just not go there lol.